Difficulties in Job Work Process

Summary
job work, What is job work process, what is difficulaties in job work

Difficulties in Job Work Process

Job Work Out

Following are the
problems faced when job is delegated
to a Job Worker

·No standard practice to delegate a Job

In real business scenario, the
standard procedure of delegating a job -

·Raising the Job Work out Order

·Material Transfer Out (from the premises of
Principal Manufacturer/directly from the supplier of Raw materials to the Job
worker)

·Accounting the receipt of finished goods

·Accounting the Bill from the Job Worker

·Payment to the Job Worker

is not followed by all the principal
manufacturers. The procedure of delegation of Job varies from organisation to
organisation depending on the nature of the Job delegated or type of transaction
(depending on the regularity) or relationship with the Job worker.

·Monitor
& Analysis of Material

·Tracking Job Work wise - Raw material to be
issued, actual raw material despatched, variance in quantity of raw materials
as against the agreed Bill of Material

·Tracking quantity of Finished goods to be
received, actual receipt and balance

·Cost/Profit
Tracking: Principal manufacturer can ascertain the cost of
manufacture of a job delegated. These statistics can be used to compare and
analyse the cost as against cost of manufacture of goods in house or by other
Job workers.

Job Work In

Following are the
problems faced when a Job is received by the Jobworker from the Principal
Manufacturers

·No standard practice for receiving a Job

·In real business scenario, the standard
procedure of receiving a job -

·Receipt of Job Work In Order

·Material Transfer In (from the premises of
Principal Manufacturer/directly from the supplier of Rawmaterials of Principal
Manufcturer)

·Accounting Delivery of finished goods

·Raising Invoice for billable work/stock

·Receipt of Payment from the Principal
Manufacturer

is not followed by all the Job
workers. The procedure of receiving Job varies from organisation to
organisation depending on the nature of the Job or type of transaction
(depending on the regularity) or relationship with the Principal Manufacturer.

·Monitor & Analysis of Material Received

·Tracking Job Work wise - Raw material to be
received, actual raw material received, variance in quantity of raw materials
as against the agreed Bill of Material

·Tracking quantity of Finished goods to be
despatched, actual Quantity Delivered and balance

·Preparing Material Movement Registers

·Job Worker Invoice

·Tracking of own material consumption by the Job
Worker for a job

·Billing for the own material consumed for the
Job

·Cost/Profit
Tracking: Job Worker can ascertain the cost of manufacture of a
job received. These statistics can be used to compare and analyse the
cost/profit of job work carried out for different Principal Manufacturers .